The US government shut the deal down, fearing it would help China gain the “know-how” to make Qualcomm’s cutting-edge 5G chips.

The White House sees China’s technological rise as a great threat to America…

President Trump recently invited big tech CEOs to the White House to talk “bold ideas for how we can ensure American dominance” in industries of the future.

The meeting centered on how these firms and the government can work together to achieve American dominance in tech. They focused on disruptive areas like artificial Intelligence (AI)… 5G… and advanced manufacturing.

Does that sound like the government wants to break up big tech?

Not long ago, Facebook CEO Zuckerberg stood in front of Congress and warned that breaking up America’s big tech companies would help China.

He’s right. Google, for example, is the undisputed world leader in self-driving cars. It achieved this by investing billions of dollars into developing self-driving tech since 2009.

As regular RiskHedge readers know, this money came from the huge profits generated by Google’s core search and advertising businesses. It has consistently plowed a big chunk of those profits into developing breakthrough technologies. Google is also a world-leader in the crucial areas of artificial intelligence and quantum computing.

In short, Google is America’s greatest tech “incubator.” Breaking it up would ruin that.

The US government has a history of breaking up firms it deems “too big”...

It broke up Standard Oil in 1911... AT&T in 1982... and went after Microsoft in the 1990s.

But there’s too much at stake here. MIT forecasts self-driving cars alone are set to unleash $7 trillion in new wealth in the next decade.

Imagine if a Chinese company claims the lion’s share of that?

It would help China surpass the US as the world’s largest economy—a title America has held since 1871.

No matter what you think of President Trump, we can all agree he doesn’t want China closing in on the US while he’s President. He’ll do everything he can to make sure that doesn’t happen.

Which means we should expect more cooperation between Washington and big tech.

Okay Stephen, how does this make us money?

As I mentioned, big tech stocks have plunged on worries the US government will break them up.

Big tech will probably get a slap on the wrist. And they’ll have to pay some big fines.

But these companies won’t be broken up as long as we’re in a tech race with China.

After its recent 20% drop, Google (GOOG) is selling at its cheapest valuation since late 2016.

I’ve suggested buying Google several times in this letter. If you’ve been waiting to buy in at lower prices, now’s your chance.

You’ll likely have to wait out some choppiness in the stock price as this “break up big tech” story passes.

Stephen McBride is editor of the popular investment advisory Disruption Investor. Stephen and his team hunt for disruptive stocks that are changing the world and making investors wealthy in the process. Go here to discover Stephen's top "disruptor" stock pick and to try a risk-free subscription.

Reader Mailbag

RiskHedge Reader Bob L. asks:

Where is the economy going? It’s been a long time since we had a recession and usually during a recession, most stocks drop—even strong ones. How does this fit into your disruption investing strategy?

Thanks for your question, Bob. You can find my full take on preparing for recessions and crashes here. In general, many investors spend too much time worrying over when the next recession or crash will hit, which can blind them to big opportunities to make money now.

Don’t get me wrong—you must have a plan in place for these situations. You should separate your stocks into two groups: ones you’ll hold no matter what, and “fair weather” stocks you plan to sell when markets get stormy. Then you’ll need to follow through on the plan.

If you feel nervous or unsure you’ve prepared correctly, check out my friend Robert Ross’ research. He specializes in safe income, and he’s one of the smartest guys I know at picking stocks that thrive in good and bad times. Robert is holding a safe-income summit that you’re welcome to attend for free. If you’re interested, go here to reserve your spot.

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